voluntary arrangement

British  

noun

1. law a procedure enabling an insolvent company to come to an arrangement with its creditors and resolve its financial problems, often in compliance with a court order

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Example Sentences

"The resettlement team ensured everyone understood this was a voluntary arrangement and that rooms were available should they decide to stay."

From BBC • May 29, 2022

It hired auditors to prepare for the company voluntary arrangement earlier in 2020.

From BBC • Nov. 29, 2020

He said he had tried to negotiate a settlement with the Bank of Ireland eight times, including offering to enter into a individual voluntary arrangement but said the bank had "rejected all our proposals".

From The Guardian • Jun. 13, 2012

Ted Richardson, the long-serving chairman, entered an individual voluntary arrangement in July and is awaiting the ruling of a Rugby Football League tribunal which could force him to step down from the board.

From The Guardian • Sep. 22, 2010

And even when his insolvency becomes public and default occurs, a debtor may still avert bankruptcy if he is able to effect a voluntary arrangement with his creditors.

From Encyclopaedia Britannica, 11th Edition, Volume 3, Part 1, Slice 2 "Baconthorpe" to "Bankruptcy" by Various